Chapter One

Chapter OneDevelopment of Integrated

Marcom

IntroductionMarketing Communication is…..

‘ are messages and related media used to communicate with a market. Activities involved include advertising, branding, direct marketing, graphic designing, marketing, packaging, promotion, publicity, public relations, sales, sales promotion and online marketing.’

Answer.com, 2007

Integrated Marketing Communication (IMC)….

‘presents aspiration for companies to develop and optimal combination of communication elements in order to maximize effects and minimize losses (defined as investment which did not result in goal achievement).’

Answer.com, 2007

Evolution of Marketing Communications

Communication starts with..

‘Tukang Canang’

Printed media

Radio

TV

Internet

Reasons to Communicate.. To Inform

Marketers communicate to inform about a new product in the market or new improvements made to the present product, change of location / address, new ventures and etc.

To Persuade

Marketer wants the customer to think that their brand is the best or give the customer reasons why they should consider their specific brand instead of competitors.

To induce action

Marketer wants the customer to get into action such as trying the products that is being promoted

Factors that brought about to the growth of marketing communications

1. The impact of globalization

2. Change in consumer’s consumption pattern.

3. Increased number in working women

4. Decrease in government intervention

Marketing and Marketing Communication

Product

Price

Promotion

Place

NamePackagingIngredients

RetailerAgents

Direct Marketing

AdvertisingSales PromotionPersonal Selling

PriceTerms of Trade

The Marketing Communication Tools

• Advertising Any paid from of non-personal communication

used by an identified sponsor. Advertising can either be mass communication; using TV, newspaper, radio, direct communication

• Personal SellingThis is a face to face communications where the seller attempts to persuade the customer and the prospects for the purpose of making sales.

• Sales PromotionAll marketing activities that attempt to stimulate quick buyer actions. It is mostly short term incentives offered to target market to encourage responses.

• Public relations The component in marketing communication that

fosters goodwill between the marketer and the public.

• Point-of-purchaseConsists of all communications efforts carried out at the place where the buyer comes into contact with the product or actually buy the product. E.g. in-store product display, window displays and exhibitions.

• Sponsorship marketing Supporting of happenings or events with the

hope of getting good rapport for the marketer.

Marketing Communications at the Brand Level

This is the key means for

differentiating one company’s offering

from another’s

A well-known and respected brand is an invaluable asset

Brand

A successful brand can create barriers to entry for

competitors

Integrated Marketing Communications (IMC)

The philosophy and practice of carefully coordinating a brand’s sundry marketing communication elements.

The Meaning of Synergy

• The payoff from IMC is that brand managers achieve

– The integration of multiple communication tools and media yield more positive communication results than the tools used individually

Five Key Features of IMC

1. Start with the customer or prospect.

2. Use any form of relevant contact.

3. Achieve synergy (speak with a single voice).

4. Build relationships.

5. Affect behavior.

Changes in Marketing Communication Practices

• Reduced dependence on mass media

advertising.

• Increased reliance on highly targeted

communication methods.

• Heightened demands on suppliers.

• Increased efforts to assess communications’

return on investment.

Obstacles to Implementing IMC

• Few providers have the skills required

to execute.

• Mass media campaigns easier than

Direct-to-Customer.

• The real challenge is to make sure

that tools are consistently executed.

Definition of Brand Equity

Brand equity can be considered either from the perspective of the organization that owns it or from the vantage point of the customer.

As Brand Equity Increases…

1. A higher market share is achieved

2. Brand loyalty increases

3. Premium prices can be charged

4. The brand earns a revenue premium

Two forms of Brand Knowledge

Brand Awareness

An issue of whether a brand name comes tomind when consumers think about a particular product category and the easewith which the name is evoked.

Two Forms of Brand Knowledge

Brand Image

The types of associations that come tothe consumer’s mind when

contemplating a particular brand.

Dimensions of Brand Personalities

• Sincerity - brand is seen as down to earth, wholesome and cheerful

• Excitement - brand is seen as daring, spirited, imaginative, and up-to-date

• Competence - brand is seen as reliable, intelligent, and successful

• Sophistication - brand is seen as upper class and charming

• Ruggedness - brand is seen as tough and outdoorsy

3 Ways Brand Equity Is Enhanced

1. Speak-for-itself

2. Message-driven

3. Leveraging

Co-branding and Ingredient Branding

• Co-branding

A partnership between two brands

• Ingredient branding

Inclusion of one brand within the other

Characteristics of World Class Brands

• Delivers benefits consumers want

• Stays relevant

• Price equals value

• Good positioning

• Consistency

Characteristics of World Class Brands

• Fits into brand portfolio

• Brand helps build brand equity

• Brand’s managers understand what the brand means to consumers

• Support over long run

• Monitoring of the sources of brand equity